THE PRESIDENT: Good morning. The health and future of the
American economy depends heavily on the honesty of American business
and the integrity of the securities markets. Investors must have
completely fair and accurate information to make sound investment
decisions. The federal government, through the Securities and Exchange
Commission, enforces the basic truthfulness requirement of our
society.

Today I announce my nominee to serve at the chairman of the SEC.
Bill Donaldson will be a strong leader with a clear mission, to
vigorously enforce our nation's laws against corporate corruption and
to uphold the highest standards of integrity in the securities
markets.

I am proud you're here. I also want to thank Jane and Adam and
Matthew and Kimberly and Andre for being here, as well -- the
Donaldson family.

Bill is one of the most respected business leaders in our nation.
And he brings a unique and diverse background to this really important
task. As a founder of a leading investment banking firm, he
understands the capital markets and he understands financial
institutions. As the Chairman of the New York Stock Exchange, he set
high business standards and worked for the interests of the small
investor. As the founding dean of the Yale School of Management, he
sees business as a calling which demands high standards of integrity.
He's a lifelong entrepreneur, a Marine Corps veteran. He's an
experienced and dedicated public servant. He's a good man.

Throughout his exceptional career, Bill Donaldson has shown an
ability to take on big assignments, to confront big problems, and to
meet big challenges with a lot of energy and a lot of success.

The new chairman will assume leadership of an agency that's moving
forward on many fronts. This past year, the SEC has filed a record
number of actions for financial reporting and disclosure violations.
The agency sought the removal of more than 100 corporate officers and
directors on grounds of misconduct; has filed dozens of restraining
orders to protect against corporate misdeeds; ordered corporations and
executives to return to investors hundreds of million dollars in
improper gains.

To strengthen investor confidence, the SEC ordered the leaders of
nearly 1,000 large corporations to certify the financial information
they submitted in the last year -- to certify that it was fair and
that it was accurate. SEC investigators are also working closely with
our corporate fraud task force to ensure quick action against fraud and
against insider trading.

We've accomplished much, and there's more to do. We must continue
to prosecute corporate criminals. We must implement the provisions of
the Sarbanes-Oxley Act, from broader disclosure requirements to tougher
penalties for wrongdoing, to removing executives who break the faith
with the shareholders and the American people. These are the far most
reaching reforms of American business since Franklin Roosevelt was the
President. We'll give them full force.

Over the last year, the SEC has added new personnel, and will
receive a significant increase in its budget. Today I'm announcing
that I will request yet another increase in SEC funding for fiscal year
2004, which when enacted, will mean we have nearly doubled the budgets
from 2002.

Bill Donaldson and his entire organization will have my strong
support, and the resources they need to carry out their important
duties. Public confidence in our market and our stock exchanges and in
companies is absolutely essential to our free enterprise system, and to
a growing and dynamic economy that creates jobs and opportunities for
each and every American.

When we uphold an ethic of responsibility in American business, we
expose the wrongdoers. We also recognize and reward the many good
companies and honest people who create wealth and jobs throughout the
economy.

I want to thank Bill Donaldson for taking on this very important
task. I look forward to his confirmation by the United States Senate
at the earliest possible date.

Welcome, Mr. Donaldson. Appreciate you.

MR. DONALDSON: Thank you, Mr. President. I deeply appreciate the
opportunity you've offered me to serve our country at this most
important and challenging time.

Confidence in the U.S. corporate and financial industries has been
seriously eroded during the past few years. Restoring the confidence
of investors in the integrity of the markets is the responsibility of
all of us. Corporate managers, boards of directors, operators,
regulators of our financial markets, as well as those who advise,
including bankers and lawyers and accountants, must be constantly
mindful of the trust that shareholders have placed in them. Each of us
must take that trust very seriously.

Until my nomination is confirmed by the Senate, I believe it would
be inappropriate for me to comment on exactly what I hope to accomplish
as chairman of the SEC. Let me just simply say that I am firmly
committed to doing everything that I can do to restore the confidence
of investors in the U.S. corporate and financial industry.

Despite the historical soundness, as you say, Mr. President, and
integrity of American industry as a whole, there have clearly been
numerous instances of serious malfeasance, which if proven we will
continue -- and must continue -- to deal with swiftly. As my
mother used to say many years ago, it's time for all of us to pull up
our socks.

Again, Mr. President, I'm honored to be asked to serve and I look
forward to beginning the task at hand. Thank you very much.